Pizza and swimming pools vs. iPhones? Warren Buffett has shifted his focus to Domino’s Pizza and Pool Corp stocks. This move comes amid significant sell-offs of some of his historic investments.
Pizzas and Swimming Pools Over iPhones, Says Warren Buffett.
This surprising news has caught the attention of investors worldwide—after all, when Buffett moves, the financial world takes notice.
In today’s market session, Wall Street reacted strongly to the revelation that Berkshire Hathaway, the investment conglomerate founded and led by the Oracle of Omaha, has purchased shares in Domino’s Pizza and Pool Corp.
The details of these transactions emerged from documentation filed by Berkshire Hathaway with the U.S. Securities and Exchange Commission, covering investments made through September. 30, 2024.
These purchases come as Berkshire continues to manage an impressive cash reserve, which nearly doubled in 2024, reaching a staggering $325.2 billion by the end of Q3. Notably, Berkshire has halted its stock buyback program for the first time since 2018.
Major Sell-Offs to Make Way for Pizza and Pools
Buffett’s latest moves stand out, considering Berkshire sold $132.2 billion worth of stocks in 2024, including significant reductions in holdings of Apple and Bank of America—two cornerstone investments of recent years.
Conversely, purchases during the same period amounted to just $5.8 billion, highlighting a more selective investment strategy.
Buffett’s New Bets: Domino’s Pizza and Pool Corp
Berkshire Hathaway acquired 1.3 million shares of Domino’s Pizza, representing a 3.6% stake in the company, valued at approximately $550 million. Additionally, the conglomerate invested in Pool Corp, acquiring a 1% stake worth $152 million in the swimming pool equipment distribution company.
These investments are raising eyebrows on Wall Street, especially as Berkshire significantly reduced its Apple holdings by 25% this year and brought its Bank of America stake below the 10% threshold after consistent cuts.
A Surprising Flash Sale: Ulta Beauty
In another unexpected move, Berkshire sold off nearly all its shares in Ulta Beauty, a company in which it had invested just a few months earlier. In Q2 2024, Berkshire purchased 690,106 shares of Ulta for $266.3 million, but by Q3, it had offloaded more than 96% of its position, leaving only 24,000 shares in its portfolio.
This rapid divestment sent Ulta’s stock tumbling by over 5% on Wall Street, reflecting investor concerns. Year-to-date, Ulta’s stock has dropped more than 21%, failing to meet expectations and prompting Buffett’s swift exit.
Buffett’s recent pivot to Domino’s Pizza and Pool Corp, coupled with significant reductions in Big Tech and financial stocks like Apple and Bank of America, marks a notable shift in Berkshire Hathaway’s strategy. These moves highlight the Oracle of Omaha’s ability to surprise the market and continually adapt to changing conditions. Whether this signals a broader trend or a tactical adjustment remains to be seen, but as always, Buffett’s decisions command the market’s full attention.
Original article published on Money.it Italy 2024-11-15 16:33:58. Original title: Oggi vale più una pizza che un iPhone. Parola di Warren Buffett
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